DEWG and SDAWG Meeting Summary Report to COPS 2/10/2009

DEWG and SDAWG Goals Nodal COMS Review Nodal Readiness communication and tracking for commercial issues EDS Settlement Testing for Nodal Submitting NPRR's and PRR’s as needed focus on Data Extract, Report Timeliness and other Settlement issues. Tracking and reporting on Data Extract and Report Issues in Current Market Studying impacts of Hurricane Ike and UFE on Settlements Resolve Timely issues assigned by COPS

DEWG/SDAWG Goals- Observations  While many of the Goals focus on Nodal Market initiatives, the working groups must continue to focus on current settlement, extract and reporting issues  The working groups must be responsive to the needs of ERCOT in relation to testing and review timelines, success criteria, data needs etc.  The working groups must work to inform market participants of the progress made in systems and testing and ensure that market readiness is met

Extract Issues  ERCOT reported on the Extract and Report issues from the holidays through the first of the year. Extract Report and Incident Log stored at the following URL:  Report and Extract issues since January have been on the decline

UFE  SDAWG and DEWG began discussions with ERCOT staff on the impacts of Hurricane Ike and UFE  UFE settlement over the periods of September 2008 through November 2008 created swings in UFE that caused significant cash flow settlement challenges  Discussions on accuracy of data centered around the TDSP estimation process  ERCOT plans a follow up report on February 16,2009 Meeting

Nodal COMS  ERCOT provided a refresher on the basics of Nodal Extracts design  Staff has made considerable progress on the development of Extracts and Reports and has organized the Nodal COMs information for easy access to market participants  DEWG/SDAWG will continue to follow the development and testing processes for Nodal COMs and will participate as needed by ERCOT Staff

Settlement Concerns  Since last meeting, concerns about off-line settlements and notice to market participants has been brought up as an issue  Two incidences involving off system settlements of a short pay situation and a short pay/litigation situation have prompted questions and suggestions of more stringent guidelines on ERCOT providing notice and appropriate data for these settlement  Market Participants utilize Market Notices for tracking and preparing for off-system settlements as they involve manual effort